Debt Management Info Blog

posted by on Dec 29

There are many different ways for an individual to get out of serious debt.  Options include using personal loans, home equity loans, high-limit, low- interest credit cards, and debt consolidation services.  Taking advantage of government grants is another very interesting method with which debt can be diminished.

Advertising on the Internet, television, and radio all claim that debt consolidation is one of many things that money from a government grant can help you pay for.  This however, is not always true.  Even when it is, debtors will not have an easy time putting government grants to use for debt consolidation.

What kind of grants are they talking about?

Government grants are usually released to individuals who are trying to buy there first home or open a small business.  There is not any grant program that was designed with intention to help people pay off the debt that they owe.

A small business grant is the only type of government grant that is in any way related to debt alleviation.  It is conceivable that a person may open a small business in an attempt to earn extra income to be used in the payment of debt.  The government does not give out a large number of these grants, however, and being considered for one requires that the small business being opened fit the government’s criteria.

Where Can Additional Grants Be Found?

Apart from the government, individuals can receive grant money from private corporations.  Such corporations have specific requirements that whoever wants to receive their money must be able to meet.  Attempting to eliminate personal debt tends to be unrelated to the needs of a large business corporation and therefore not a valid reason to receive a grant on their part.

Charitable donations, however, are rather commonly made by large corporations.  Acts of charity are done by businesses in an attempt to improve the public’s opinion of them or to support the local community.  Giving of this nature is not a reliable and therefore should not be considered as a way for debt relief.

Where Can You Find Help for Debt?

There are several sources of help available for individuals in debt.  Though finding someone to pay off your debt for you would be very unusual, you may be able to reduce your minimum monthly payment and interest rates on credit cards by speaking with the credit card companies personally or by using a credit counseling agency.

Available for free on the Internet is information on how to create a personal budget that will allow you to have extra money each month that you can use to pay off debt.  You can take control of debt yourself, even without the government’s assistance.

posted by on Dec 24

There is an appropriate and beneficial time to use a credit card.  Sometimes we have an emergency or need to make a purchase right away and simply do not have the cash available.  That is the time to use a credit card.  At times when we receive the statement we are still not quite ready or able to pay for the purchase.  This is even worse for people who find it very difficult to control their credit card spending.  For them, they truly dread receiving that statement at the end of the month.

Get Help

If you have a credit card that has a growing balance due to the high interest charges don’t feel that all is lost.  There is something you can do.  You can call the credit card company’s customer service department and try to negotiate a lower rate.  They will be able to inform you quickly if you qualify for such a reduction.  If you are able to reduce your interest you can begin to chip away at the balance because you will not be spending so much money each month on the compounding interest.

Utilize the Internet

Other help is available and can be found on line, such as non profit credit counseling.  There are thousands of financial experts out there who can help you with your credit card debt and they can easily be located on line.  Sometimes it can be arranged for you to have a live chat with credit counselors that can help you get back on track and better manage your finances.  There are also web sites that sell reading material with instructions on how to get out from under debt.

Counselors That Can Help

Non Profit Credit counseling is also available on the internet or face to face.  Credit counselors can evaluate your situation and explain to you where you have gotten off track.   Also some are willing to negotiate with your creditors in your behalf to reduce your interest and give you a more manageable payment.  Seeking help from credit counselors will help you drastically improve your credit scores.

Credit Counseling for Free

You will find that most credit card counselors offer their services free of charge.  Simply pull all your debts together and prepare the information for them to review.  They will give you options and help you choose the plan that will help you in time to get back on your feet financially.

posted by on Dec 22

posted by on Dec 21

posted by on Dec 7

Debt settlement is one of the simplest tools that can be used to reduce debt balances for a borrower. In essence, debt settlement means contacting a creditor or a debt elimination company and settling on a reduced loan balance. If a consumer owes $18,000 in credit card debt and has other obligations that make it impossible to make timely payments, debt settlement is a very attractive alternative to declaring bankruptcy.

For the borrower, debt settlement reduces that balance that is owed to the creditor. For the creditor, it increases the likelihood of receiving at least a portion of what is owed. There is something in it for both sides, but consumers need to be careful when pursuing settlement as a debt solution.

Debt settlement is most viable as an option when the debt has been passed on to collectors. Although it doesn’t feel like it to the consumer, the borrower is in a position of power in negotiating a debt settlement. Ultimately the creditor has to approve the deal, but the borrower is the one who could walk away from the table, drag their feet, and finally file for bankruptcy - a very costly consequence if a creditor fails to negotiate.

Many borrowers feel that attempting to settle their debts puts them at the mercy of the creditor, but this simply is not the case. The creditor is dependent solely on the borrower to receive their payment.

There are several important factors to remember if you’re considering negotiating a debt settlement. First, do your homework. There are countless companies who will make tempting promises about what they can do for you that simply won’t deliver. If it sounds too good to be true, it probably is.

Find a debt elimination company that can show a track record of successful settlements. Talk to several companies about your specific situation to weigh their recommendations against one another. Also, talk to people who have successfully negotiated debt settlements and learn from their experiences. You can save money by skipping hiring a negotiator and working on your own if you feel comfortable dealing with collectors. Keep a paper trail to make sure you can prove the details of the deal that is reached.

The downsides of debt settlement need to be understood as well. First, this can be an expensive option. Many negotiators charge an upfront fee as well as a percentage of the amount saved by the borrower in the settlement. Many programs charge fees monthly, even if no progress is being made. Second, the amount forgiven in a debt settlement is considered income and is taxable to the borrower. Once you factor in the taxes due and the fees, a borrower may not be saving nearly as much in a debt settlement as they thought. Finally, debt settlement can hurt your credit score, as paid off debt show up as “settled” rather than “paid in full.”

Getting out of debt through debt settlement is a much better option than bankruptcy. However, there are pitfalls that consumers need to understand before pursuing this strategy.

posted by on Dec 4

posted by on Dec 1

Many people currently find themselves stuck deep in quite the financial quandary.  This is because these people do not make enough money at their current jobs to be able to afford to pay for a college education that they desperately want.  At the same time, however, they are not able to get a better paying job due to the fact that they do not have a college education.  Alaska student loans, however, can help you pay for college expenses even if you don’t have a great job right now.

Individuals who are not currently living in Alaska may have to pay double tuition at colleges in Alaska.  For current Alaskan residents, Alaska student loans can help you to be able to pay for your college education at any of the colleges in Alaska you wish to attend.

Out of State Residents

For individuals who would be interested in attending a college or university in Alaska but do not currently live there, it is important that they understand that Alaska student loans probably will not cover all of their education related expenses.  Tuition costs often double when you attend an out of state college as well.  If you want to get an Alaska student loan, remember that you will be considered a state student after you have lived in Alaska for six months.

What to Pay for with Your Loan

The money you receive with your Alaska student loan can be used to pay for expenses you incur as part of your college studies.  Remember that, regardless of how much money you ask to borrow, you will have to pay back 100% of your student loan plus any applicable interest.  Take that into consideration when deciding how much you should borrow to cover the cost of tuition, books, food, and housing. Just be heedful in choosing the right debt elimination company whom you think can really help you.

When the Loan Must Be Paid Back

Most Alaska student loans do not have to be paid back until you have already graduated from college.  From the time you graduate, you will normally have a six month grace period during which you do not have to pay on your student loans.  If you choose to stop attending school before you graduate, the six month grace period starts at the time you quit.  When you are applying for a loan, be sure to pay close attention to the interest rate you will be charged.

posted by on Nov 25

posted by on Nov 16

Save Money with Debt Assistance

If you feel like you are drowning in debt then a debt assistance provider may be able to help you get your head above water again. Nevertheless, it would be best to look at ways to get out of debt on your own before having someone help you.

A Second Job

The easiest way to reduce your debt quickly without resorting to debt assistance is to get a second job. Devote your earnings on your second job to getting out of debt. Apply the savings toward the highest interest debt first, then the next highest interest rate, and so forth.

If you don’t feel you have the time or energy to devote to a second job, consider working your second job from home. If you have internet at home with high speed connection you can find many freelance jobs to work on right in your own home.

Sell What You Have

Look around your household and consider what you might sell, and apply the proceeds of the sale towards reducing your debt. There are several ways to list your items that you have around the home or garage to sale to potential buyers, such as eBay, Craigslist or in a local newspaper.

Another option is to have an old-fashioned garage sale. The more you sell the more you will make and you may be surprised at how much people will buy at a garage sale. Just like in the second job option, you will need to put all the proceeds from your sale towards getting out of debt. Don’t look at this as extra money, but rather as a resource in debt assistance to be used solely for the purpose of getting you out of the burdens caused by too much debt.

Credit Assistance

If you fine your attempts toward getting out of debt on your own is not making a big enough difference as quickly as you had hoped, then you should schedule an appointment with a credit counselor. A one-on-one session with an experienced credit counselor will provide you with resources you need to manage your debt and your finances. They will show you have to create a budget that you can live with and teach you how to be consistent with it.

Together, you and your credit counselor will set up a debt management plan that includes all your creditors and all of your debt. They will take into consideration all your daily living expenses when creating a budget for you to adhere to. That way you will be able to stick to the plan over the months or years that it takes to conquer debt.

Be Patient

Assistance provided by credit counselors will work, when you make it a priority to follow their advice. It typically takes an individual up to six years to get all their debts paid off. You should not create any new debt during this process, or it will only extend the amount of time it takes to become debt free.

posted by on Oct 21